Technology Licensing In Korea

Although in past years foreign technology licenses were subject to advance government approval and circumscribed by a strict regulatory regime, recent market-opening reforms have been accompanied by a relaxation of Korea's rules on technology licensing. Currently, except in certain limited circumstances, transnational technology license agreements (TLAs) need no advance government report or approval. Technology Licensing changes have occurred under control of the Ministry of Finance and Economy (MOFE) and governed through the Foreign Capital Inducement Act (FCIA) which was replaced by the Foreign Investment Promotion Act (FIPA) in 1998.

The following questions have been addressed in this article:

What are the reporting requirements when the term of royalty payments exceeds one year?What are the regulations by which royalty payments are subject to foreign exchange laws?